I've found that a number of McDonald's Operators don't know how the new USA
president got started in McDonald's. His father is Whitey Andres, the chief pilot
for McDonald's Corp. in the 1970s and early 1980s.
Whitey retired to become a McDonald's Operator opening a store in Mammoth
Lakes, CA in late 1983. Working in the store were his two sons, Russell and Mike.
As I was busy running my own stores I don't know when Whitey sold the store but
do know that Russell became a McDonald's Operator in Los Angeles and Mike some
how ended up working for the company. He left McDonald's for a few years to serve
as CEO of Logan's Roadhouse, a 260 unit restaurant chain.
The following NRN article was published a few months after Andres left Logan's to
be rehired by McDonald's.
Logan’s Roadhouse restaurant looks to cut costs - NRN
.
12 comments:
Holy cow! Every McD o/o should read this article before they listen to a thing this guy says. He destroyed Logans and then bailed out. He couldn't run a tiny chain so he's qualified to run a 14,000 chain?
Executives also suggested that the menu the chain rolled out in its fourth quarter didn’t resonate with the consumer, “and was not as simple and consumer friendly as it could have been,” Borgese said. He suggested the menu should be simplified around its core items of steak, ribs and spirits.
Beyond that, executives suggested that just about everything is on the table as they look to reverse the chain’s decline. “There’s really not anything we’re not taking a look at in our business today,” Bertauski said.
Logan’s problems can be attributed to a combination of high debt and weakness among the chain’s core, middle-class consumer.
From reading that article, seems like the chicken are coming home to roost. In other words his work was sending the company into Bankruptcy. Not being able to cover debt payments is serious.
If he could NOT do it on a smaller scale what makes the Board think he can turn us around.
They will be looking for someone new by Christmas or April 2016 at the latest.
Most corporate people don’t understand debt it is just a number to them when they work for a company the worst that can happen is they get fired nobody is coming after them to collect the bad debt.
As a McDonald’s executive told me one time “don’t you want to do a MRP” my answer was I would love to do it as I have pride in my business it would look great, help the brand but it would be economically irresponsible for me to do it unless you can show me it would get a certain return so I can show my banker. The executive went on to say “so you don’t want to do it right” again my answer was I would love to do it but I have a responsibility to pay my rents & service fees, pay my vendors, service my existing debt, make payroll etc. With doing a MRP on this restaurant which was not required I could no longer be cash flow positive so he went on to say “ok I’ll mark down you don’t want to reinvest or do it” I had to follow-up again with I would love to do it if you can show me how to cover & service the debt I would be taking on. We kept going in circles the bottom-line is they just do not understand debt as it is just a number not something they are signing their name to and personnel assets.
I assume you were accused of not being "entrepreneurial"? Actually blindly taking on all that debt based on pressure from a corporate bureaucrat is the opposite of entrepreneurship.
The cruel and unfortunate fact is the Field Service people have no understanding of the concept of what it takes to cash flow a business. They espouse the corporate line that adherence to the dictums from above is an absolute necessity (in maintaining their jobs). There will never be a partnership if one party is so unaware of the realities of running a viable
business.
The majority of top McD management have never run a business or met a payroll. The majority of field service came up thru McOpCo and have no idea about cash flow or profitability
By completing a MRP lets face it, the place looks great when done. Does it increase sales and guest counts? It has too, I must agree. The problem is this: Sales climb no where near the point to have a ROI that is sensible. But any increase even the smallest means more rent and service fees in McD's bank.
That's why it is important to do. As for you and your banker and cashflow, oh well.......
Lets face it. MCD is aware of the issues involved in these matters. How could they not be? As long as those problems are on the operators side of the ledger they just don't care. Store cash flow just is not their problem.
Just was informed by a General Manager that we worry about our cash flow too much...lol
That GM likely has never given a "Personal Guarentee" on anything in his/her life.
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